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414 Diagnosing Corruption in Ethiopia
publication and verification of company payments and government revenues
in extractive industries (including mining). In 2009, Ethiopia
announced its commitment to join the initiative. Ethiopia’s commitment
is welcome, and its EITI membership will assist in its moves toward
greater transparency. However, EITI currently only requires relatively
limited disclosure of information, and corruption prevention would be
best assisted if Ethiopia adopted the wider disclosure requirements recommended
above. In particular, it is imperative that Ethiopia does not
treat its EITI membership as a complete solution to corruption in the
sector. Transparency is a vital part of corruption prevention, but it is only
one of many actions that need to be implemented, and all the recommended
actions in this chapter should be adopted.
Recommendation 3: Strengthen internal audit procedures by introducing
random checks and improving capacity.
Random checks by internal auditors for compliance with procedures and
for any evidence of corruption can both deter corrupt acts and uncover
corruption that has taken place. All federal, regional, and city licensing
authorities should have an internal audit department that functions as
follows:
• The internal audit department should have enough auditors to allow a
wide-reaching and frequent audit.
• The auditors should receive specific anticorruption training that highlights
the areas of corruption risk they should be looking for.
• The internal audit function should be entirely independent and able to
choose on its own which licenses and which departments it audits and
at what time.
• The internal audit department should report any findings of possible
corruption or wrongdoing simultaneously to the board of the relevant
licensing authority; to the ethics officer of the relevant licensing authority;
to whichever is appropriate of the FEACC, the regional ethics and
anticorruption commission, or the police; and to the Office of the
Auditor General.
Recommendation 4: Enhance the role and status of the ethics officer.
MOM currently has a temporary ethics officer who is responsible for
examining procurement by MOM. There should be a major increase in
the scope of that officer’s work and resources. The ethics officer should